Dairy giant Danone's jump in sales is good news for Irish firms
DAIRY foods giant Danone yesterday reported a jump in sales during the third quarter of the year, in what was seen as encouraging news for the Irish dairy sector, in particular Kerry Group and Glanbia.
The French multinational said like-for-like sales rose by 5.9pc during the three months from July to the end of September, driven mostly by a 4.4pc increase in price. Volumes rose 1.5pc.
In a statement, company chairman Franck Riboud reiterated his group's full-year targets for 2011. Operations in Asia, Latin America, and Africa/Middle East are continuing to post robust growth," he said.
The numbers were welcomed by analysts, with NCB's Darren Greenfield seeing encouraging signs for the Irish companies.
"The fresh dairy division continues to perform in line and grow volumes, excluding Russia, despite 3pc price increases. This is encouraging general read across for Glanbia and Kerry Group, which both have significant dairy operations," he said.
"Continued double-digit growth in Africa and the Middle East is also positive for Glanbia, which exports a significant proportion of its dairy ingredients production to these geographies. Dairy Ingredients represents close to 15pc of Glanbia's earnings before interest, taxation and amortisation, from our estimates.
"It is also positive for top-line growth in Glanbia's Nutricima joint venture," he added.
Kerry closed up 0.73pc, Glanbia lost 3.26pc.